THE BRIEF

HISTORY OF THE
COMPANY

1946:
The company was incorporated on 21 st February at Chennai. The company runs
two cement factories on at Sankaranagar in the Nellai kattabomman district and the other
at Sankaridurg in the Salem District of Tamilnadu state. It also runs a foundry at
Nandambakkam near Chennai City.
1956:
160000 Right Equity Shares issued at par in the proportion 4 shares for every
175Rs Paid-up Equity Capital.
1957:
Deferred Shares converted into equity shares of Rs.5 each in proportion of 1:1.
Dividend rate of Preference Shares altered to 7.5%.
1958:
In August, Equity Shares of Rs.25 each in proportion subdivided into 729650 Rights
Equity Shares then issued in proportion of 1:3.
1959:
In December, 3500 preference Shares and 30350 Equity Shares Alloted to Essen
Private Ltd., and managing agents. At the same time, 40000 No of Equity Shares allotted
to the directors of the Managing Agents in November 1960 are 1500000 Right Equity
Shares issued at par in proportion of 1:2.
1961:
25, 00,000 Right Equity Shares issued at par in the proportion of 5:9.

1965:
In October, the company acquired foundry machinery and other fixed assets from
Microtec Casting Pvt.Ltd.
1969:
Issued 29, 00,000 Bonus Equity Shares in the proportion of 2:5.
1984:
33,350of 71/2 % of Cumulative Preference Shares of Rs.100 Each were converted
into 131/2% secured redeemable Non-Convertible Debentures of Rs.100 Each from 1 st
April.
1985:
A crushing cum screening plant was installed at sankarnagar. The quarries at the
sankari factory were modernized and the third captive DG set was installed at
Sankarnagar plant.
In order to convert the Sankarnagar plant to a more fuel efficient process, the
company accepted the proposal of Blue Circle Industries P.I.C from UK, for setting up a
3000 Tonnes per day precalciner dry process kiln adopting the latest technology.
On the 20th February the company allotted 33,350 of 15% Secured redeemable
non-convertible debentures of Rs.100 each in conversion of 33,350 of 7 1/2% cumulative
preference shares of Rs.100 each. The debentures are redeemable on or after 7 years but
not later than 10 years from the date of allotment.
Also, 600,000 of 15% secured redeemable non-convertible debentures of Rs.100
each were privately placed with LIC, GIC and its subsidiaries to be redeemed in 5 equal

installments commencing from the end of the 5 th year and ending with the 9 th year from the
date of allotment at a premium of 5% at the end of the 7 th year.
1000,000 of 20% non-convertible redeemable debentures of Rs.100 each were
privately placed with LIC, UTI and GIC.
1986:
Larsen and Turbo were appointed as the Indian Consultant.
The company considered various technical options for converting the wet process
factory at Sankaridurg to Dry process to avoid losses arising out of periodic rise in local
prices.
1987:
Dry process kiln with preheater was erected for improving the economic viability of
the foundry. It was proposed to delink the division from the company by transferring it to a
subsidiary.
1988:
On 1st November, ICF Foundaries Ltd. was incorporated to delink the foundry from
the cement division.
1989:
In the last quarter of the year as a measure of forward integration, the company
entered the business of real estate and property development.
1990:
The company was granted a license by the ship acquisition licensing committee for
purchase of 4 dry bulk cargo vessels.

On 29th November, after obtaining necessary approvals, the company took

possession of the cement division of Coromandal Fertilizers Ltd., in Chilmakur Village,
Cuddapah district, Andra Pradesh.
The companys overall installed capacity increased to 2.6 Million Tonnes
representing 12.5% of total capacity in South India and 34% of the total capacity in
Tamilnadu.
In order to part finance the modernization programme at sankarnagar the company
offered during February/March 10,29,000 of 12.5% secured fully convertible debentures of
Rs.125 each out of the total issue of 9,80,000 debentures were offered to the equity share
holders of the company in the proportion of 1 Debenture for every 5 Equity Shares held
and 49000 debentures were offered to the employees of the company (Including the
retention of over subscription, a total of 11,71,660 debentures were allotted).
The conversion of the debenture was to take place at two stages. In part I 58,
58,300 No. of equity shares were allotted and in part II 52, 27,848, No. of equity shares
were allotted. The holders of 622 debentures opted for this conversion. The holders opted
for the original terms of conversion. Accordingly, 2777 No. of equity shares were allotted
on 21.10.1992.
1991:
Due to fire accident in September, two of the three furnaces were damaged
affecting production for more than three months.
The company acquired two bulk cargo carriers with 53,644 DWT and 43,300 DWT
Tonnes capacity and named as ICL Rajarajan and ICL Jayamkondan respectively.

The company acquired controlling interest in the Industrial Chemicals and

Monomers, Ltd. (ICML) which runs a calcium carbide unit adjacent to the companys
sankaranagar plant.
1992:
In accordance with the approval of shareholders ICL foundries Ltd. the wholly
owned subsidiary of the company, took over the supervision of the operations of the
foundry division with effect from 1st July.
The company acquired two more bulk cargo carriers. The company handed back
the time-chartered vessels to the owners.
The performance of the shipping division was affected by the unprecedented delays
at various ports in India for the discharge of fertilizers cargo in the wake of change in the
Government policy on the fertilizer Industry.
During April, the company issued 31,97,230 rights equity shares of Rs.10 each at a
premium of Rs.40 per share in proportion of 1:5 and additional 4,79,584 shares were
allotted to retain over subscription.
The company issued 14% cumulative redeemable preference shares of Rs.100
each aggregating to Rs.6.25 Crores to Financial Institutions. These shares will be
redeemed at a premium of 5% in 3 equal annual installments on the expiry of 8 th, 9th and
10th year from the date of allotment.
1993:
The company acquired a vessel named ICL VIKRAMA. The shipping division
chartered 4 foreign flag vessels for the purpose of carrying coal from Australia to India.
During June, the company issued 49, 62,372 rights equity shares of Rs.10 each at a

premium of Rs.60 per shares in the proportion of 1:4 all were taken up except 137 equity
shares. The allotment of which was kept in abeyance because of court orders.
1994:
An up gradation/utilization of equipment programme was undertaken and its
capacity was also being upgraded to 1.1 Million T.P.A.
The shipping division acquired its 4 th bulk carrier M.V. ICL Partibhan of 55, 882
DWT.
Thought freight rates were higher during the year, the shipping division could not
accrue the full benefit as two of its ships were drydocking during January/March 1995,
leading to a loss of 60 operating days.
On 18th October, the company offered global depository receipts (GDRS) for US
Million at the price of US 5 per GDR/share involving issue of 58, 57,987 GDRS/Shares.
One share will be issued respect of one GDR.
ICL Foundries Ltd., Industrial Chemicals and Monomers Ltd. and ICL Financial
services and ICL International Ltd. are all subsidiaries of the company.
1995:
Production and sales of the foundry division was affected due to unscheduled load
shedding/power tripping.
The company acquired its fifth bulk carrier, M.V. ICL Raja Mahendra 47893 DWT. 8
Voyages were also performed through chartered vessels.
15,00,000 No.of Equity Shares of 10 Each (Premium of Rs.205) for share allotted
on Preferential basis against warrants 321, 68,291 bonus shares allotted in proportion of
1:1.

1996:
The company undertook to set up a new energy efficient cement mill at its
sankarnagar plant.
During the year the shipping division had to brave rough weather with freight rates
continually falling and freightment contracts being hard to come by.
1997:
As a part of its ongoing diversification activites the Rs.900 Crore India Cements Ltd.
(ICL) is setting up a sugar manufacturing facility, ICL Sugars Ltd. in Mandya District of
Karnataka.
India Cements Ltd. through its group companies ICL Securities Ltd. (ICLS) and ICL
Financial Services Ltd. (ICLFS) had acquired about 40 percent of the paid-up capital of
Aruna Sugars Finance Ltd. from the Aruna Sugars and Enterprises Ltd. (ASEL) for a
consideration of Rs.6.08 Crores.
The Chennai based India Cements Limited. (ICL) is set to acquire Cement
Corporation of Indias (CCI) yerraguntla (Andhra Pradesh) unit with CCI. Recommending
the name of the former to the Industry ministry. ICL has recently diversified into sugar by
setting up a 2500 TCD sugar factory at Mandya in Karnataka.
The cement major India Cements Ltd. (ICL) has floated a new venture, styled
coromandel Electric Company Ltd. to set up a collective captive power plant.
India Cement has emerged as a winner in the takeover race after Gujarat Ambuja
Cement Ltd. the only other company in the race, backed out at the last stage alleging foul
play in the take-over process.

India Cements Ltd. (ICL) has set its sights on Raasi Cements. It is preparing to
mount a take-over bid, which if successful would give the madras based ICL, Countrys
Second largest Cement capacity after ACC.
ICL signed a Memorandum of Understanding (MOU) with CCI on December 10 th,
and completed the take-over formalities on January 21 st.
1998:
ICL also commissioned its new 0.9 Million TPA plant at Dalavoi in Tamilnadu in the
later part of FY-97.
After the Successful take-over of Raasi Cements, India Cements has initiated the
process of margining the former with itself having reconstituted the entire board of Raasi.
The India Cements Ltd. (ICL), with annual capacity of seven million tonnes per
annum, has launched its premium brand Coromandal King Superior 53 Grade Cement.
1999:
The India Cements Share Price has been rising sharply in the past fornight by
about 26% to close at Rs.38 on March 31st.
An agreement was inked with BOBL in November last and all formalities were
completed.
2000:
The company in a bid to further reinforce its leadership position in the region, has
entered into a marketing tie-up with Andhra Pradesh (AP) based 0.6 Million tonnes
panyam cement.
The company has entered into an agreement with Panyam Cement and Mineral
Industries Ltd. for distribution and Marketing of cement.

Chennai based Indian Cements is learnt to have held talks, or is in the process of
holding talks, with at least two Multinational Cement Companies Blue Circle and Cemex
to set up joint venture Company.
The cement major India Cements has launched a comprehensive portal on home
making (Homztoday.com)
2001:
India cements is finalizing plans to reduce its manpower strength by around 700
during the current financial year.
2002:
Board decided to sell the 39% Equity shares of Sri Vishnu Cements and has signed
a share purchase agreement with Zuari Cement Ltd.
Company enters into an agreement with Citibank. N.A.
IDBI appoints Mr.J.Jayaraman as the Director on the board.
Negotiates with Financial Institutions led by IDBI for its Debt restructuring.
The Board of India Cements scraps the resolution to pay 11.5% preference dividend
posts a net loss of Rs.910.9 Million as compared to net loss of Rs.190.5 Million for the
same period last year.
Files a corporate debt-revamp plan to the financial institutions.
2003:
The board co-opted Mr.N.D.Pinge as the Nominee Director in place of
MR.N.Biswas, who ceased to be the director consequent to withdrawal of Nomination by
ICICI Bank Ltd. It Is restructuring its debt under corporate debt restructuring systems and
the details of the restructuring package which includes VRS, Sale of Assets, restructuring

10

of debt including working capital facilities. The restructuring proposals provides for various
exit options for secured and unsecured lenders with different yield and maturity. The
package is subjected to annual review based on which it is modified.
Appoints Mr.M.V.Mohammed as the Director on the Board of the company.
2004:
The company through its special purpose vehicle M/s.Coromandel Electric Co.Ltd.
has commissioned a (Gas Based) captive power plant at ramanathapuram for a capacity
of 17.4 MW and the same has started supplying power from the month of Novemeber
2004.
2005:
The company has successfully completed an equity issue in the international
market during October 2005 by issuing 25, 613,796 global depositary shares (GDSS) at
USD 4.3226 per GDS (Each GDS representing 2 underlying equity shares of Rs.10 each)
and raised an amount of Rs.497 Crores including a premium of Rs.446 Crores.
2006:
India Cements signs MOU Government of Himachal Pradesh Sri.T.Dulip Singh one
of the Director on the Board of the Directors expired on November 19, 2006.
The company has issued unsecured zero coupon convertible bonds due 2011
(FCCBS) for US Million to investors outside India at an Initial Conversion Price of
Rs.305.57 per share.

11

2007:
India Cements Ltd. has co-opted Mr.Ashok Shah, Zonal Manager (New Delhi), Life
Insurance Corporation of India in the place of Mr. P.N.Jambunathan.
India Cements Ltd. has co-opted Mr.K.Subramanian representing housing and
Urban Development Corporation Ltd. (HUDCO) as an additional director of the Company.
The Honble High Court of Judicature at Madras vide its order dated 25 th July 2007
sanctioned the scheme of amalgamation of Visaka Cement Industry Ltd. with the India
Cements Ltd.
The Company has converted the Sankari plant from wet process to dry process and
commissioned the plant.
The company has privately placed 2, 07, 89,000 Equity Shares at a price of
Rs.285/- per share (Including premium of Rs.275/- per share) by way of qualified
Institutional placement in December 2007.
2008:
The company has revived its shipping business with the purchase of two ships (Dry
bulk carriers) with a total capacity of 79843 DWT. The company has successfully bid for
the Chennai franchise of the DLF-IPL 20-20 Cricket Tournament Chennai Super Kings.
The company has completed and commenced commercial production of One Million
Tonne grinding plant at Chennai.
2009:
The company has completed and commenced commercial production of the Million
Tonne grinding plant at Parli (Maharashtra).

12

The companys subsidiary namely Trishul Concrete Products Limited has completed
and commenced commercial production of one lakh W.M ready mix concrete plant at
Hyderabad (Andra Pradesh).
The IT Line of 1.2MT at Malkapur was commenced operations from March 2009.
The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram started
functioning from April 2009.
2010:
The Corporate office of the company was shifted in February, 2010 to its own
building "Coromandel Towers" at 93, Santhome High Road, Karpagam Avenue, MRC
Nagar, Chennai 600 028.
The Company privately placed in March, 2010 2,45,94,000 equity shares at a price
of Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified
Institutional
Buyers.
The Companys cricket franchise "Chennai Super Kings" has won IPL III Trophy in
April 2010. The Company invested 99.99% of the share capital of Coromandel Minerals
Pte. Limited (CMPL), Singapore, making CMPL a subsidiary effective from 1st June 2010.
The Chilamakur plant with capacity upgraded to 4500 Tonnes per day started
functioning from June 2010.
The Companys cricket franchise "Chennai Super Kings" won Champions League T20
tournament on 26th September 2010.

2011:
Trinetra Cement Limited (formerly Indo Zinc Limited), the companys subsidiary, has
commenced commercial production of its 1.5 million tonnes cement plant in Banswara
District, Rajasthan, in January 2011.
IS/ISO 9001:2008 Certification for Dalavoi Plant in February 2011.
The Company redeemed fully all the outstanding Foreign Currency Convertible Bonds for
US$ 75 Million on 12th May 2011, the scheduled date.

13

The Companys cricket franchise "Chennai Super Kings" won IPL IV Trophy on 28th May
2011.

The Birth Centenary of Sri.T.S.Narayanaswami, one of the Founders of the Company,

was celebrated on 11th November, 2011.

IS/ISO 9001:2008 Certification for Sankari Plant in November 2011.

2012:
The 48 MW Captive Power Plant at Sankarnagar was commissioned in January
2012.
IS/ISO 9001:2008 Certification for Yerraguntla Plant in April 2012.

The Company had acquired its third bulk carrier of 52489 DWT in August 2012.

PRODUCTS:
Coromandel Super Power, Sankar Super Power and Raasi Super Power are the
Premium Blended Cements from the INDIA CEMENTS LIMITED. It is produced by intergrinding of OPC clinker along with gypsum and mineral admixtures. Dedicated to the end
user after passing through stringent test at R&D Laboratory, It ensures durable structures
that cast for generations.
SUBSIDIARIES:

Industrial Chemical and Monomers Limited. (ICML)

ICL Securities Limited. (ICLSL)

ICL International Limited. (ICL Int. Ltd.)

14

Trishul Concrete Products Limited. (TCPL)

PT Coromandel Mineral Resources (CMR)

Trinetra Cement Limited (Formerly Indo Zinc limited. (TCL)

Coromandel Minerals Private Limited, Singapore (CMPL)

15

MANAGEMENT AND
ADMINISTRATION

16

INTRODUCTION:
Management and Administration of the company are considered to be highly responsible
and burden some tasks involving risk. Further more the management is answerable to the
share holders, creditors and other interested parties. Because the capital contributed by
them has to be used properly only for this reason. The companies act contain the
appointment, powers and authorities of several managerial personal of the company.
MANAGEMENT:
The India Cements Limited is a professionally managed company headed by
Mr.N.Srinivasan, Vice Chairman and Managing Director. The day to day affairs of the
company are managed by him assisted by key personnel in each functional area. The
Board of Directors ultimately responsible for the management of the affairs of the
company.

BOARD OF DIRECTORS

17

Shri.N.Srinivasan

Vice Chairman and Managing Director

Mrs.Chitra Srinivasan

Director

Ms.Rupa Gurunath

Whole Time Director

Shri.B.S.Adityan

Director

Shri.R.K.Das

Director

Shri.N.Srinivasan

Director

Shri.N.R.Krishnan

Director

Shri.A.Sankara Krishnan

Director

Shri.Arun Datta

Director

Shri.V.Manickam

Representing LIC of India

Shri.K.P.Nair
Shri.K.Subramanian

Nominee of IDBI Bank Ltd

-

Representing Housing and urban

Development Corporation Limited.

AUDITORS

Mrs.Brahmayya & Co.

Mrs.P.S.Subramania Iyer & Co.
Chartered Accountants Chennai.

18

MEMORANDUM
OF ASSOCIATION

The Memorandum of Association is the first step in the formation of the company.
It is a document of great importance in relation to a preparation of the company. It
combines a fundamental conditions upon which alone the company is allowed to be

19

incorporated. It also shows the path for the external affairs of the company with the
outsiders.
The Memorandum of Association of ICL contains the following:
NAME CLAUSE:
The Name of the Company India Cements Limited.
REGISTERED CLAUSE:
The Registered Office of the Company is
Dhun Building, 827,
Annasalai,
Chennai-600002.
OBJECT CLAUSE:

To Produce and Manufacture, refine, prepare, process, import, export, sell and
general dealings in cement, part land cement and limestone and by-products
thereof.

To produce, take a lease or acquire the undertaking business and property or any
part there of any company, Largest Builders, Contractors, Engineers, and Export
and to Buy or Sell.

To transport and to carry on all kinds of Agency business.

To amalgamate with any company or companies having object altogether of the

parts similarly to the company.

To produce, Manufacture, process, treat, purchase, or sell or otherwise deal with

either the principle or the principles or the agents solely or the partnership with
other cement or alumia cements, lime, plaster of paris.

20

To search for over mines, grant license for mining in or over any land which may be
owned by the company and to lease out such land for buildings and other use.

To use, cultivate, work, manage, improve carely and develop and turn to accopunt
the understanding lands, mines, rights, priveleges and absent of the company.

To make advance up on or for the purchase of materials, goods, machinery stores

and other articles required for the purpose of the company.

To work mines or quarries and to protect for search for, search find, win get work,
rush, smelt, manufacture, or otherwise deal with limestone clay materials and
generally to carry on the business of mining in all its branches.

Though there are many objects provided by the company, the above specified are
the important objects of the company.

LIABILITY CLAUSE:
The Liability clause specified that the liabilities of the company are limited.
CAPITAL CLAUSE:
The Capital clause in the Memorandum describes the Capital Structure of the
Company. The Share Capital of the Company is registered Rs.2, 25, 00, 00, 000
capable of Increase or Decrease in accordance with Company Articles and Legislative
Provisions for the time-being in force dividend into 75, 00, 000 redeemable cumulative
preference share of Rs. 15, 00, 000 equity shares of Rs. 10 each.
ASSOCIATION CLAUSE:
The several persons whose names and addresses are subscribed are desirous of
being formed into a company in pursuance of this memorandum and articles agree to

21

take the number of shares in the capital of the company set opposite to their respective
names.

22

ARTICLES
OF ASSOCIATION

23

The articles are the other important fundamental documents. They are only the
subordinate to and controlled by the Memorandum. Articles are the rules and
regulations and by-laws for internal management of the company.
Articles generally means
The Articles of Association of a Company as originally framed or altered from time
in pursuance of this art.
The following are the contents of the Articles of Association

Capital

Lien on Shares

Calls on Shares

Transfer of Shares

Transmission of Shares

Forfeiture of Shares

Conversion of Shares into stock

Share Warrant

Alteration of Capital

Votes of Members

Proxies

Board of Directors

Retirement, Removal of Directors

Secretary

Seal

24

Management Agent

Dividends and Reserves

Capitalization of Profits

Audit

Service of Documents and Notices

Authentications of Documents

Winding Up

Indemnity and Responsibility

Secrecy

Annual return

Alteration and Reduction of Share Capital

Accounts

Variation Rights.

25

ORGANIZATION STRUCTURE

26

ORGANIZATION CHART
CHAIRMAN
VICE PRESIDENT
CHAIRMAN
VICE PRESIDENT
(FINANCE)
GENERAL
SECRETARY

GENERAL
SECRETARY
(I.A)

VICE PRESIDENT

VICE PRESIDENT

GENERAL
GENERAL
MANAGER
MANAGER
(OPERATIONS) (OPERATIONS)

GENERAL MANAGER
(F.C.A)

DEPUTY
GENERAL
MANAGER

DEPUTY GENERAL

SENIOR
MANAGER

SENIOR
MANAGER

GENERAL

DEPUTY

SENIOR

MANAGER (F.C.A)

ASSISTANT
MANAGER

ASSISTANT

SENIOR MANAGER

OFFICERS

OFFICERS

ASSISTANT MANAGER
OFFICERS

27

FLOW OF AUTHORITY

CHAIRMAN
PRESIDENT
VICE
PRESIDENT
COMPANY
SECRETARY
GENERAL
MANAGER
DY.GENERAL
MANAGER
SENIOR MANAGER
ASSISTANT
MANAGER
OFFICERS
28

FUNCTIONS OF
DEPARTMENTS

FUNCTIONS OF DEPARTMENTS:

29

Purchase Departments:
The purchase procedure outline in this manual aims to fulfill the following objectives:

To buy competitively and wisely, authorize supplies to decide specifications from

approved reliable sources at the available reasonable prices within the time
schedule to support production plans and other requirements.

To ensure the fair and open purchase practices are followed and healthy and
good relationship develops with suppliers to faster the commercial interest of
HAL in the local, National and International Market.

To ensure timely formulation and commitment of Purchase budget including

foreign exchange requirements.

To serve as information centre on materials knowledge-prices, sources of

supply, specifications etc. to all other departments.

To ensure that investments made or inventory is at an optimum level. Training of

purchase personnel in the latest techniques of materials management.

To keep management appraised of the likely shortfalls in purchase department

performance by reducing appropriate supporting systems with a view to seek
management interventions in time.

Purchase Funtions:
Economical therefore about 55% cement is carried by the railways. There is also a
problem of inadequate availability of wagons especially on the western railways and south
eastern railways. Under this scenario, there is an need to encourage transportation
through sea which is not only economical but also reduces losses in transit. Today 70% of
the cement movement worldwide is by sea compared to 1% by India.

30

PURCHASE DEPARTMENT STRUCTURE

PURCHASE
DEPARTMENT
EXECUTIVE
DIRECTOR
CHIEF MANAGER
PURCHASE
MANAGER
OFFICERS

TABLE SHOWING OF PAST SIX YEARS

(Rs.in Crore)

31

YEARS

RAW MATERIALS

2005

128.60

2006

189.88

2007

242.21

2008

312.95

2009

242.47

2010

331.29

INTERPRETATION:
The result of Current Ratio for the 2008-2009 is 312.95, 2009-2010 is 242.47, 2010
is 331.29 times. The result shows the current ration in 2010 has increased when compared
to other preceding years.

32

PRODUCTION DEPARTMENT

PRODUCTION OF CEMENT:

33

Manufacture of Cement comprises of four stages viz.

Extraction of limestone from mines, blending or ground limestone, clay or Bauxite
and Iron ore or Laterite in right proportion and centering in lotary kilns at a high
temperature of 14000 OC to 15000 OC from Clinker.
Grinding of clinker with gypsum tofrom cement. Storing in silos testing and dispatch
from the final process of manufacturing.
Varities of Cement:
The varities of cements manufactured by India Cements Limited are:

Ordinary Portland cement (OPC-53,43,33)

Portland Pozzolana Cement (PPC)

Sulphate Resistance Cement (SRC)

Cement Process:
Cement acts as bonding agents, holding particles of aggregate together to form
concrete. Cement production is highly energy intensive and involves the chemicals of
Calcium carbonate (Limestone), Silica, Alumina, Iron ore and small amounts of other
materials. Cement is produced by burning limestone to make clinker and the clinker is
blended with additives and then finally ground to produce different cement types. Desired
physical and chemical properties cement can be obtained by changing the percentages of
the basic chemicals components (CaO, Al2o3, Fe203, Mgo, and So3 etc.)
Most cement produced is Portland cement: other cement types include white,
masonry, and slag, aluminous and regulated set cement. Cement production involves
quarrying and preparing the raw materials, producing clinker through pyroprocessing the
materials in huge rotary kilns at high tempratures and grinding the resulting product into

34

fine powder. The following detailed description is borrowed from the world energy council
(1995).
Raw Materials Preparation:
Raw Materials preparation involves primary and secondary crushing of the quarry
materials, drying the materials (for use in the dry process) are undertaking further saw
grinding through either wet or dry processes and blending the materials. The energy
consumption in raw materials preparation accounts for a small fractions of overall primary
energy consumption (less than 50%) although it represents a large of the electricity
consumption.
Clinker Production:
Clinker Production is the most energy- intensive step, accounting for about 80% of
the energy used in cement production in the United States. Produced by burning the
mixture of materials, Mainly limestone (CaCO3), Silicon oxides (S1O2), Aluminum, and Iron
oxides, Clinker is made by one of two production process: wet or dry, these terms refer to
the grinding process. Although other configurations and mixed forms (Semi-wet, Semi-Dry)
exists for both type.
In the wet process, the crushed and proportion materials are grounded with water
mixed and fed into the kiln in the form of slurry. In the dry process the raw materials are
grounded mixed and fed into the kiln in their dry state. The choice among different process
is dictated by the characteristic and availability of raw materials. For example a wet
process maybe necessary for raw materials with high moisture content (greater than 15%)
or for certain chalks and alloys that can best be processed as a slurry. However the dry
process in the more modern and energy efficient configuration. Once the materials are

35

grounded they are fed into kiln for burning. In modern kilns, the raw materials must be pre
heated (In 4-5 stages) using the waste heat of the kiln or it is pre-calcined. During the
burning or pyroprocessing, the water is first incorporated after which the chemical
composition is changed, and partial melt is produced. The solid material and the partial
melt is combined into small marble sized pellets called clinker.
Finish Grinding:
Cooled Clinker is grounded in tube or roller mills and blended by simultaneous grinding
and mixing with additives (Example gypsum, anhydrite, pozzolana, fly ash or blast furnace
slags) to produce the cement. Drying of the additives maybe needed at this stage.

SCHEMATIC DIAGRAM OF MANUFACTURING OF

CEMENT
ARGILLACEOUS MATERIAL (CLAY
BAUXITE)

CALCAREOUS MATERIAL
(LIMESTONE FROM MINES)

36

RIGHT PROPORTION

KLIN 14000 DEGREE CELSIUS TO 1500

DEGREE CELSIUS

CLINKER

GRINDING WITH GYPSUM

CEMENT

CHEMICAL AND PHYSICAL TEST

DESPATCH

PRODUCTION DEPARTMENT STRUCTURE

37

UNIT HEAD

FACTORY MANAGER

TECHNICAL MANAGER

DISTRIBUTION
MANAGER

PRODUCTION
MANAGER

SUPERVISOR

SUPERVISOR

JUNIOR OFFICER

JUNIOR OFFICER

STAFF

STAFF

TABLE SHOWING PRODUCTION FOR PAST SIX YEARS

38

YEARS

PRODUCTION (in Tonnes)

2005

54.09

2006

66.92

2007

84.24

2008

92.34

2009

91.11

2010

93.50

BAR DIAGRAM SHOWING PRODUCTION FOR PAST SIX YEARS

39

40

PERSONNEL DEPARTMENT

41

PERSONNEL INDUSTRIAL:
In terms of the provisions of section 217 (2A) of the companies act, 1956, real with
the companies (particulars of the employees) Rules, 1975, as amended the names and
other particulars of the employees are to be annexed to the Directors Report.
However, as per Provision of Section 219(1)(b)(IV) of the said act, the annexure
report excluding the aforesaid information is being sent to all members of the company
and others entitled thereto.
The board of Directors lays down the policies relation to the recruitment, training,
transfer and promotion of the employees. The personnel department has to implement
these policies. The main function of the department is recruitment of workers, training
them and placement in suitable jobs.
In India Cements Limited, this department deals with the recruitment, promotion,
disciplinary action, etc which is the essential components of any organization.
The duties of the Personnel Department in India Cements Limited are:

Planning

Job Specifications

Advertisement and Selection

Placement and Promotions

Discharge, Retirement

Human Relations and Office Supervision

Recruitment and Training

42

Job Evaluation

Merit Rating

Health safety and Welfare Activity

Housing to the Employees

Providing free education to the Employees Children.

Personnel Department is primarily concerned with the human resources of the

enterprises and includes development, monetary and non-monetary welfare of the

personnel for the purpose of contributing towards the accomplishments of the
organizations.
The company continues to place importance on training at all levels the total
number of employees at the end of the financial year.

43

ORGANIZATION STRUCTURE OF PERSONNEL DEPARTMENT

PERSONNEL DEPARTMENT

EXECUTIVE DIRECTOR

PERSONNEL MANAGER

OFFICER

ASSISTANT

44

FINANCE DEPARTMENT

45

The Finance Department Is a backbone of any organization. In short, it deals with

the accounts department and deals with:

Main Cash Voucher

Petty Cash Voucher

Bank Credit Advices

Bank Credit Advisors

Cheques Issued

Cheques received

Cash received

Cash receipts

Supply bill details

Invoice Details

Bank Deposit Challans

All the above transactions are carried on would immediately be taken to accounts
department, which will be divided into two sections namely:

Wage Section

Finance Section

India Cements Limited is a large company and has four factories, mainly engage in the
manufacture of cements. Each factory has its own cost/profit centre and accounting is
done factory wise.

46

CAPITAL STRUCTURE FOR THE YEAR 2009

PARTICULARS

2009 (Rs.in Lakhs)

EQUITY SHARE

28243.05

7.70

334895.93

91.35

DEBENTURES

2291.54

0.62

LOANS

1172.45

0.31

TOTAL

366602.97

100.00

RESERVES & SURPLUS

47

CAPITAL STRUCTURE FOR THE YEAR 2010

PARTICULARS

2010 (Rs.in Lakhs)

EQUITY SHARE

30717.45

6.06

382864.95

75.59

DEBENTURES

60618.14

11.96

LOANS

32308.04

6.37

TOTAL

506508.58

100.00

RESERVES & SURPLUS

48

TABLE SHOWING PROFIT AND LOSS ACCOUNT

YEAR

PROFIT (Rs. In Lakhs)

2001

5115

2002

-757

2003

-30723

2004

-11273

2005

458

2006

4998

2007

49196

2008

84464

2009

64830

2010

53132

49

BAR DIAGRAM SHOWING PROFIT OR LOSS FOR PAST TEN YEARS

TREND ANALYSIS

50

COMPARITIVE BALANCE SHEET

PARTICULARS

2009 (in Lakhs)

2010(in Lakhs)

INCREASE /(DECREASE)

28243.05

30717.45

2474.40

Reserves& Surplus

338495.93

382864.95

47696.02

Secured Loans

103624.99

86664.36

16960.63

Unsecured Loans

95177.97

126608.68

1584.30

Deferred tax Liability

27406.24

28990.54

828569.29

589348.18

655845.98

LIABILITIES
Capital

Total
ASSETS

51

Fixed Assets

471229.29

462150.64

9078.65

Investments

15897.33

31397.33

15500.00

Loans & Tax Assets

99021.21

160234.48

61213.27

Deferred Assets

1845.28

2063.53

218.25

Deferred Revenue Tax

1355.12

0.00

1355.12

589348.23

655845.98

TOTAL

FINANCIAL PERFORMANCE (2009-2010)

(Rs.in crores)
Net Sales / Income From Operation

3687.27

Other Income

120.99

Total Income

3808.26

Total Expenditure

2944.75

Operating Profit

863.51

Operating Margin

22.67%

Interest And Finance Charges

142.64

Gross Profit After Interest

720.87

Depreciation

233.12

Profit Before Tax

487.75

Foreign Exchange Fluctuation

43.57

52

Profit Before Tax

531.32

Fringe Benefit Tax

Deferred Tax Liability

13.66

Taxation Provision Net

163.32

Profit After Tax

354.34

Return On Capital Employed

16.52%

RATIO ANALYSIS
53

RATIO
Ratio is mathematical relationship between two items express in quantitative arithmetically
with the denominators.
Ratio Analysis:
Ratio analysis is an old technique of financial analysis and interpretation of financial
statements with the help of ratios worked out by dividing one number by another number.
Accounting rations measures indicates efficiency of an enterprise in all aspects such as
forecasting managerial control, measuring contials, measuring efficiency and inter-film
comparisons, etc.
The ratios are calculated in the following steps:

Profitability Ratio

Turn Over Ratio

54

Financial/Solvency Ratio

The ratios are also classified as follows:

Classifications by statements

Classifications by user

Classifications by Relative Importance

Classification by Purpose/Function

The profitability turnover and solvency ratio come under the classification ratio by purpose
and function. These ratios can be understood by following tables

CLASSIFICATION OF
RATIOS
PROFITABILIT
Y RATIO

TURNOVER RATIO

Return investment
ratio

Return
investment ratio

Net profit ratio

Net profit ratio

Gross Profit ratio

Gross Profit ratio

Expenses ratio

Expenses ratio

55

FINANCIAL
SOLVENCY
RATIO

SHORT TERM
SOLVENCY RATIO

LONG TERM
SOLVENCY
RATIO

Current ratio

Proper ratio

Liquid ratio

Fixed asset
ratio

Cash position
ratio

Capital
gearing

PROFITABILITY RATIO:
Profit making is the main objective of every business. Aim of business concern is to
earn maximum profit in absolute terms and also in relative terms. That is Profit to be
maximum in terms of risk undertaken and capital employed. Ability to make optimum
utilization or resources by a business concern is termed as Profitability. The following are
the various ratios used to analyze profitability.

Return on Investment

Net Profit Ratio

Gross Profit Ratio

Expenses Ratio

56

Operating Ratio

RETURN ON INVESTMENT:
It is also called as overall profitability rates on returns on capital employed. It
resources the sufficiency or otherwise of profit in relations to capital employed.

Formula
Operating Profit
Return on Investment =

100
Capital Employed

Years

Particulars

Ratio

2008

84464/118150100

71.49

57

2009
2010

64830.40/99021.21100
53132.09/160234.48100

65.47
33.16

INTERPRETATION:
Return on Investment is used to measure the operational and managerial efficiency.
The higher the ratio the more is the use of the capital employed. In this case ROI of the
company with that of capital employed.

NET PROFIT RATIO:

This Ratio is also called Net Profit to Sales Ratio. It is a measure of managements
efficiency in operating the business, successfully from the owners point of view. It indicates
the return on share holder investement. Higher the ratio is better the Operational Efficiency
of the Business concern.

Formula
Net Profit after Tax
Net Profit ratio =

100
Net Sales

58

Years

Particulars

Ratio

2008

84464/355447 100

23.76

2009

64830.40/383912.30100

16.89

2010

53132.09/3687.27100

14.40

59

INTERPRETATION:
Higher the ratio is better the operational efficiency of the business concern. In this case
2009 is 16.89 than the current year 2010 is 14.40. It is not good for the company.

GROSS PROFIT RATIO:

60

The ratio is also called asgross margin or trading margin ratio. Gross profit ratio
indicates the differences between sales and direct costs. Gross profit ratio explains the
relationship between gross profit and net profit.
Formula
Gross Profit
Gross Profit ratio =

100
Net sales

Years

Particulars

Ratio

2008

43825/355447 100

12.33

2009

72764.23/383912.30100

18.95

2010

48774.59/3687.27100

13.22

INTERPRETATION:

61

Gross profit ratio is expected to be adequate to cover operating expenses, fixed interest
charges, dividends and transfer to resources, and higher profitability. In this case the gross
profit for the year 2009 shows 12.33 when compared with the next year 2010 18.95. it is
because of 13.22 the sales of the company and decline in the manufacturing expenses.

EXPENSES RATIO:
These Ratios are also known as supporting ratio of operating ratio. They indicate the
efficiency with which business in as a whole function. It is better for the concern to know
how it is able to sale or waste over expenditure in respect of different items of expenses.
Therefore, each aspect of cost of sales and operating expenses are analyzed.
Formula
Administration expenses
Administration expenses Ratio =

100
Net Sales

Years

Particulars

Ratio

2008

8311.70 100

2.34

62

2009

12805.02/383912.30100

3.34

2010

16375.67/3687.27100

4.46

INTERPRETATION:
It is always better to have a lower ratio as it indicates the efficiency with which business a
whole function. In this case 2009 shows 3.34 than by 2009. In this case 2010 4.44 than
2009.

63

 OPERATING RATIO:
It is the ratio of profit made from operational sources to the sales. Usually shown as
a percentage it shows the operational as a percentage it shows the operational efficiency
of the firm and it is a measure of the management efficiency in running the routine
operations of the firm.
Formula
Operating Profit
Operating Profit Ratio =

100
Net Sales

Years

Particulars

64

Ratio

2008

1113056/181150.58100

16.89

2009

64830.40/383912.30100

14.40

2010

53132.09/3687.27100

31.84

INTERPRETATION:
Operating expenses are excluded from gross profit to find operating profit. A higher
operating profit indicates the higher efficiency of the company to earn profits from its
operations. In this case the ratio of 2010 14.40 increase than 2009 16.89.

TURNOVER RATIO:
Turnover ratio or Activity Ratio. This ratio is also called as performance ratios.
Activity ratio highest the operational efficiency of the business concern. The term
operational refers to effective, profitable and rational use of resources available to the
concern.

WORKING CAPITAL RATIO:

Working Capital ratio measures the effective utilization of working capital. It also

measures the smooth running or business or otherwise. The ratio establishes relationship
between cost of sales and working capital.
Formula
Sales
Working capital ratio =

100

65

Net working capital

PARTICULARS

2009 (Rs IN MN)

sales
working capital
working capital turnover ratio

2010 (Rs IN MN)

39545.3
734.60

42216.9
1333.07

53.8

31.76

INTERPRETATION:
Higher sales in comparison to working capital indicates overtrading and lower sales
in comparison to working capital indicates under trading. Higher ratio is the indication of
higher investment of working capital and more profit. 25.80 in 2009 is more than 23.01 in
2010.

FIXED ASSET TURNOVER RATIO:

This ratio determines efficiency of utilization of fixed and profitability of a business
concern. Higher the ration more is the efficiency in utilization of fixed assets. A lower ratio
is the indication of under utilization of fixed assets.
Formula
Sales
Fixed Assets Turnover ratio =

100
Fixed Assets

PARTICULARS

2009 (Rs IN MN)

sales
Fixed Assets
Fixed Assets turnover ratio

66

2010 (Rs IN MN)

39545.3
3808.25

42216.9
3918.61

10.4

10.87

INTERPRETATION:
The higher ratio is preferable as its reveals the utilization of fixed assets in the
business. In the year 2010 the ratio is 79.78 it is 81.47 when compared to the previous
year.

CAPITAL TURNOVER RATIO:

Managerial Efficiency is also calculated by establishing the relationship between
cost of sales or sales with the amount of capital invested in the business.
Formula
Sales
Capital Turnover ratio =

100
Capital Employed

INTERPRETATION:
Higher ratio indicated higher efficiency and lower ratio indicates the inefficiency.
Usage of capital. In this case 2009 ratio 25.00 is 23.01 less than the current year 2010

67

SOLVENCY OR FINANCIAL RATIO

1. SHORT TERM SOLVENCY:
o CURRENT RATIO:
This ratio of Current Assets to Current Liabilities is called as Current Ratio. In order
to measure the short term liquidity of solvency as a concern, comparison of current asset
and current liabilities is inevitable. Current ratio indicates the ability of a concern to meet
its current obligations as and when they are due for payment.
Formula
Current Assets
Current ratio =

100
Current Liabilities

INTERPRETATION:
The ideal current ratio is 2 ie for every 1 of current liabilities there should be
coverage of current assets to the extent of 2. This implies safety to the creditors (Short
Term) and Safety to the company. In the Present case the current ratio is 0.78. but it is
totally more than the previous year 2009.

68

o LIQUID RATIO:
The Ratio is also called as Quick or acid test ratio. It is calculated by comparing
the quick assets with current liabilities. Quick assets which are quickly convertible in to
cash current assets other than stock and prepaid expenses are considered as quick asset.
Formula
Liquid Asset
Liquid ratio =

100
Current Liabilites

INTERPRETATION:
The ideal ratio is 1. Thus is because quick asset are not inclusive of inventories and
prepaid expenses. Therefore, current liabilities are covered by short term realizable
assets, in the present case the company is maintaining a ration of times.

FIXED ASSET RATIO:

69

The ratio establishes the relationship between fixed assets and long term funds.
The objective of calculating this ratio is to ascertain the proportion of long term funds
invested in fixed assets.
Formula
Fixed Asset
Fixed Asset Ratio =

100
Long Term Funds

INTERPRETATION:
The object of this ratio is to ascertain the proposition of long term funds invested in
fixed assets. An ideal ratio is 1% if it is than one it is the indication that a portion of working
capital is financial by long term funds. If it is more than 1 the fixed assets are purchased
with short term funds, which is not a prudent policy. In this case the ratio is 91.74%.

70

SALES DEPARTMENT

After the goods are made, it has to be sold. Sales are generally done through the
dealers. The Sales Department has to render some services before selling.
Fixation of Prices:
The Sales Department also does the fixation of prices for the finished goods. Any
discount to be allowed is also done by the department.
Marketing:
According to American Marketing Association, Marketing is concerned with the
people and activities involved in the flow of goods and services from producers to the
customers. The marketing in India Cements Limited is done through vital network.
Clinker:

71

Though a clinker sale does not play a major role, it also contributes to the sales.
The major sales zones of clinker are:

South Tamil Nadu

South Kerala

North Kerala

Andhra Pradesh

Karnataka

Marketing Analysis:
Marketing Analysis includes the following:
Market Penetration

Increase the sales of the present production in the market through some aggressive
marketing efforts.

Attract users of other brands

Attract new customers.

Marketing Development:

Increase sales by entering new market with present products for development
market.

They also have to market additional areas to improve their supply product
development.

Increase sales by way of developing new products in the present market.

Newspaper margins are the various sources through which the product can be
introduced to the general public.

72

MARKETING DEVELOPMENT STRUCTURE

EXECUTIVE
COMMITTEE

MARKETING

CHIEF MANAGER
73

PLANNING AND FORECASTING

MANAGER

SENIOR MARKETING
PERSON

MARKETING
EXECUTIVE

ASSISTANTS

TABLE SHOWING SALES FOR PAST 10 YEARS

YEARS

SALES (Rs. IN LAKHS)

2001

145137

2002

131325

2003

103300

2004

123688

2005

140230

2006

183669

2007

262088

2008

360561

2009

395454

74

2010

422169

75

SECRETARIAL DEPARTMENT

The company has mainly three sections namely:

1. Secretarial Section
2. Legal Section
3. Share Section
The Secretarial Department maintains the above three sections and has
responsibilities as follows:
Secretarial Sections
The Secretarial Department is incharge of conducting the meetings such as
1. Board Meeting
2. Annual General Meeting

76

3. Extra Ordinary Meeting

The Board Meeting section also maintains facsimile of the Memorandum of
Association and the Articles of Association of the company.
The Department maintains the following:

Register of directors

Register of Directors Share Holdings

Register of Montage and Charges

Register of Loans and Guarantee

Register of Share and Debenture holders.

77

DEMATERIALIZATION OF
SHARES AND LIQUID EQUITY
SHARES

Definition:
Dematerialization is the process of converting physical shares (Share Certificates)
into an electronic form shares once converted into dematerialized form are held in a demat
account.
Meaning:
Dematerialization is a process by which physical certificates of an investor are
converted into electronic form and credited to the account of the depository participants.
Dematted securities do not have any certificates numbers or distinctive numbers and are
dealt only in quantity, i.e. the securities are replaceable.

78

Investors can dematerialize only those certificates that are already registered in
their names and are in the list of securities admitted for dematerialization. These are
shares, scripts, stocks, bonds, debentures, stock or other marketable securities of a like
nature in or any incorporated company or other body corporate, units or mutual funds.
Rights under collective investment schemes and venture capital funds, commercial paper,
certificate of deposit, securities debt, money market instrument and unlisted securities,
underlying sharing of American depository receipts issued to non resident holders.
Dematerialization is the process of converting physical holdings into electronic form with
the depository where in the share certificates are shredded and corresponding entry of the
number of shares is done in the opened with the depository. The securities held in
dematerialized form are fungible that is they do not bear any notable feature like distinctive
number, folio number or certificate number. Once shares get dematerialized they lose their
identity in terms share certificates distinctive numbers and folio numbers.

Dematerialization Process:
An Investor having securities in physical form must get them dematerialized, if he
intends to sell them, this requires the investor to fill a demat request form (DRF) which is
available with every DP and submit the same along with the physical certificates. Every
security has an ISIN (International Securities Identification Number). If there is more than
one security than the equal numbers of DFRS has to be filled in the whole process goes
on in the following manner.
1. Investor surrenders the physical certificates to the Depository participants for
dematerialization.

79

2. Depository participants informs the depository about the request.

3. Depository participants submits the certificates to the registrar of the issuer
company.
4. Registrar communicates with the depository to confirm the request.
5. Dematerialization of the certificates is done by the registrar.
6. Accounts are updated by the registrar and the depository is informed about the
completion of dematerialization.
7. Accounts are updated by the depository and DP is informed about the same.
8. Demat account of the investor is updated by DP.
Benefits of Demat Account:

A safe and convenient way of holding securities (Equity and Debt Instruments both).

Transactions involving physical securities are costlier than those involving

dematerialized securities (just like the transactions through a bank teller are costlier
than ATM transactions). Therefore, charges applicable to an investor are lesser for
each transaction.

Securities can be transferred at an instruction immediately.

Increased liquidity, as securities can be sold at any time during the trading hours
(Between 9.55AM to 3.30PM on all working days), and payment can be received in
a very short period of time.

No stamp duty charges.

Risks like forgery, thefts, bad delivery delays in transfer etc. associated with
physical certificates are eliminated.

Pledging of securities in a short period of time.

80

Reduced paper work and transaction cost.

Odd lot shares can also be traded (Can be even 1 share)

Nomination facility available

Any change in Address or bank account details can be electronically intimated to all
the companies in which investor holds any securities, without having to inform each
of them separately.

Securities are transferred by the DP itself, so no need to correspond with the

companies.

Shares arising out of bonus, split, consolidation, merger etc. are automatically
credited into the demat account of the investor.

Share allotted in public issues are directly credited into demat account of the
applicants in quick time.
As on 31st March 2009, the Companys Equity shares have been dematerialized as

per directions issued by SEBI. It is compulsory to trade in the companys shares in

dematerialization from with effect from 29 th November 1999. The ISN number allotted by
National Securities Depository Limited (NSDL) and Central Depository Service India
Limited (CSDL) for trading in companys shares in demat form is INE383A01012.
During

the

year

2008-2009,

the

company

had

received

requests

for

dematerialization of shares. The company has acted upon all valid requests received for
dematerialization during the year 2008-2009.
Equity Warrants:

81

ISIN number INE383A1317 has been allotted by National Security Depository

Limited (NSDL) for trading of equity warrants in dematerialization form, issued by the
company during the year 2008-2009.
Transmission:
Transmission of shares is effected in case of death of any shareholders in stock
holding. The following details are necessary.

A copy of death certificate duty attested by the judicial magistrate, or executive

magistrate, or executive magistrate or notary public.

Transmission from duly filled and signed by legal heirs.

Share certificate.

Procedure:
Specimen signature of the surviving shareholders is verified. On verification, a
share transmission form is prepared with all details namely, inward number, date of
receipt, number of share, distinctive number, transfer name and address, etc.
On the basis, the details are entered on the terminals and check list is obtained of
their legal heir.
The Secretarial Department after verifying the entire document transfer the shares
in the name of the legal heirs.
Register of Members:
Another Important function of the Secretarial Department maintaining the register of
members.

82

The register of members contains details regarding the name, address, occupation,
name of the joint holder, distinctive number. If there are any changes in above details. It is
updated regularly.
Annual General Meeting:
63rd Annual General Meeting of the India Cements Limited was held on 7 th
September 2008 at Sathguru Grandshall No 314, T.T.K Road, Alwarpet Chennai-600018.
Extra Ordinary General Meeting:
The following are the business transcend at the Extra ordinary General Meeting:

Altering of Share Capital

Removal of Director before the expiry terms

To transact any special business which cannot be postponed till the next Annual
General Meeting

No such Extra Ordinary Meeting was held during the financial year.

The Department Maintains:

Register of Directors

Register of Directors Share Holding

Register of Loans and Generates

Register of Share and Debentures Holders.

Ordinary Business:

83

Consideration of Mr.N.Shanker as a director who had retirementation, Reappointed

Mr.B.S.Adhityan who is eligible for reappointment.

Appointed M/S.Brahmayya & Co. and D.S.Subramanian Iyer and CO. as their
Auditor of the company and fixed 40, 00,000 each as their remuneration.

Special Business:

Resolved that Mr.N.D.Pringe of ICL has been appointed as the director of the
company subjected to retirement y relation.

Notices have been received by the company from a member of the company as
required under section 257 of the Companies Act, 1956.

Various Changes are to be implemented in the organization structure to suit the

present business condition.

Research and Development Department:

Research and Development Department plays a vital role in developing of
Industrial. The reserve department steps up to introduce same new products time to time
which is incidental and ancillary.

Expenditure on research department capital:

A sum of Rs.2.36 lakhs was spent during the year for procurement and installation
of equipments.
Researching:

84

A sum of Rs.42.62 lakhs has been spent during the year for the functioning of
research and department. Besides this Rs.41.47 lakhs is the contribute to National Council
for cement and a Building Materials (NCCBM) which carriers our research on behalf of the
industry.

85

EMPLOYEES WELFARE

There are employees welfare measures such as:

Facilities for children education

Sports and recreational facilities

Loans and advances

Medical facilities

Retirement benefits

Drinking water

Rest and lunch room

86

Housing facilities

Special medical aid

Leave travel concession

Free coffee and tea

And necessary safety measures

SPECIAL
87

ACHIEVEMENTS AND
MILESTONES

1949
Commissioning of first Cement plant at Sankarnagar-Installed capacity 1 lac tonnes per
annum.
1963
Commissioning of second Cement plant at Sankaridrug-Installed capacity 2 lac tonnes per
annum.
1969
Capacity expansion at Sankarnagar touches 9 lac tonnes per annum.
Awarded Merit Certification for Outstanding Export Performance (1968-1969).

88

1971
Capacity Expansion at Sankari Durg to 6.00 Lakh tonnes per annum.
1990
Acquisition of Coromandel Cement plant at Cuddapah-Installed Capacity rises to 2.6
million tonnes per annum.The India Cements Ltd. becomes the largest producer of
Cement in South India.
Conversion of Sankarnagar Plant to Dry Process with the increased capacity of 1.00
million tonnes per annum.
1991
India Cements ventures into Shipping. Sets up a Shipping Division.
1994
ISO 9002 Certification for Sankarnagar plant.
Floats successfully US$ 50 million GDR issue.

1995
Announces issue of 1:1 Bonus shares.
1996
India Cements' green field cement plant at Dalavoi commences commercial production.
Installed capacity 0.9 million tonnes per annum.
1997
India cements acquires Aruna Sugars Finance Ltd.Renamed as India Cements Capital &
Finance Ltd
1998

89

India Cements acquires Cement Corporation of India's Yerraguntla Cement Plant at

Andhra Pradesh. Installed capacity 0.4 Million Tonnes.
India

cements

acquires

Raasi

Cement

Ltd.,

at

Nalgonda

District

of Andhra

Pradesh.Installed capacity 1.8 million tonnes.

1999
India Cements acquires Cement Plant of Shri Vishnu Cement Ltd., at Nalgonda District of
Andhra Pradesh. Installed capacity 1.0 Million Tonnes.
Turnover sails over the Rs. 1000 crore mark.
2001
India Cements divests its stake in Sri Vishnu Cement Limited.
2001
Group's overall capacity reaches 9 million tonnes.

2004
The Unique Waste Heat Recovery System for generation of power from waste gas at
Vishnupuram Cement Plant was commissioned during November 2004, for a capacity of
7.7 MW of power.
The company through its Special Purpose vehicle M/s Coromandel Electric Co Ltd has
commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of
17.4 MW and the same has started supplying power from the month of November 2004.
2005

90

The Company has successfully completed an equity issue in the international market
during October 2005 by issuing 25,613,796 Global Depositary Shares (GDSs) at USD
4.3226 per GDS, (each GDS representing 2 underlying equity shares of Rs 10 each) and
raised an amount of Rs 497 crores including a premium of Rs 446 crores.
2006
The Company has issued unsecured Zero Coupon Convertible Bonds due 2011 (FCCBs)
for US $75 Million to investors outside India at an initial conversion price of Rs.305.57 per
share.
2007
The Hon'ble High Court of Judicature at Madras vide its order dated 25th July 2007
sanctioned the Scheme of amalgamation of Visaka Cement Industry Limited with The India
Cements Ltd.

2007
The Company has converted the Sankari plant from wet process to dry process and
commissioned the plant.
The Company has privately placed 2,07,89,000 equity shares at a price of Rs.285/- per
share (including premium of Rs.275/- per share) by way of Qualified Institutional
Placement in December 2007.
2008

91

The Company has revived its shipping business with the purchase of two ships (dry bulk
carriers) with a total capacity of 79843 DWT.
The Company has successfully bid for the Chennai franchise of the DLF-IPL 20/20 Cricket
Tournament Chennai Super Kings.
The Company has completed and commenced commercial production of one million tonne
grinding plant at Chennai.
2009
The Company has completed and commenced commercial production of one million tonne
grinding plant at Parli (Maharashtra).
The Companys subsidiary, namely, Trishul Concrete Produts Limited has completed and
commenced commercial production of one lakh Cu.M ready mix concrete Plant at
Hyderabad (Andhra Pradesh).
The II line of 1.2 MT at Malkapur was commenced operations from March 2009.
The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram started
functioning from April 2009.

2010
ICL Financial Services Limited (ICLFSL), the Companys wholly owned subsidiary,
acquired 60.89% (including shares acquired under open offer) of equity share capital of
Indo Zinc Limited (IZL). Consequently, IZL became a subsidiary of ICLFSL and ultimate
subsidiary of the Company in January, 2010.

92

The Corporate office of the company was shifted in February, 2010 to its own building
Coromandel Towers at 93, Santhome High Road, Karpagam Avenue, MRC Nagar,
Chennai 600 028.
The Company privately placed in March, 2010 2, 45, 94,000 equity shares at a price of
Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified Institutional
Buyers.
The Companys cricket franchise Chennai Super Kings has won IPL III Trophy in April
2010.
The Company invested 99.99% of the share capital of coromandel minerals Pte. Limited
(CMPL) Singapore making CMPL a subsidiary effective from 1 st June 2010.
The Chilamakur plant with capacity upgraded to 4500 tonnes per day started functioning
from June 2010
The company cricket franchise Chennai Super Kings won champion legal T20
tournament on 26th September 2010
2011
Trinetra cement Limited (formerly Indo Zinc Limited).the companys subsidiary has
commenced commercial production of its 1.5 million tonnes cements plant in banswara
District Rajasthan, in January 2011.
IS/ISO 9001:2008 certification for Dalavoi plant in February 2011.
The company Cricket franchise Chennai Super Kings won IPL IV Trophy on 28 th MAY
2011.
The Birth centenary of Sri.T.S.Narayanaswami. one of the founders of the companywas
celebrated on 11th November. 2011.

93

2012
The 48 MW Captive power plant at sankarnagar was commissioned in January 2012.
IS/ISO 9001:2008 Certification for Yerraguntla plant in April 2012.
The company has acquired its third bulk carrier of 52489 DWT in August 2012.
Commemorative postage stamp on the Birth Centenary of Sri.T.S.Narayanaswami, one of
the released of the company. Was 11th November , 2012.

94

CONCLUSION

The Institutional Training which is an applicant oriented subject helped me to gain

knowledge about the activites of the company which is not possible through theoretical
knowledge.

95

India Cements Limited is the leading cement manufacture in the country. I have a
great pleasure to present this project report on the working of India Cements Limited. The
Institutional Training which I understand in the company has really helped me in
understanding the atmosphere of todays corporate world. The experience has created on
interest in that to enter into the corporate world with confidence.

96

APPENDICES

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

THE FINANCIAL YEAR MAR 2007

97

(Rs Crore)

2007

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

220.37
40.00
1,166.18
1,165.99
892.77
3,485.31
3,856.04
781.98
1,060.21
2,013.85
142.75
55.07
1,734.79
494.28
1,240.51
33.12
3,485.31
49.73
6.81
295.29
2203.74

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

98

THE FINANCIAL YEAR MAR 2008

(Rs Crore)

2008

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

281.87
2,314.94
971.02
840.49
4,408.32
4,708.69
724.30
1,244.24
2,740.16
574.91
129.28
2,149.41
1,209.25
940.17
23.79
4,408.32
123.93
6.38
597.23
2818.69

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

99

THE FINANCIAL YEAR MAR 2009

(Rs Crore)

2009

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

100

282.43
2,683.03
1,036.25
951.78
4,953.49
5,313.58
665.93
1,505.33
3,142.32
904.04
158.97
2,161.98
1,427.38
734.60
13.55
4,953.49
155.75
2.14
357.97
2824.32

THE FINANCIAL YEAR MAR 2010

(Rs Crore)

2010

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

101

307.17
3,221.09
866.64
1,266.09
5,661.00
5,710.20
607.56
1,791.59
3,311.06
702.89
313.97
2,897.08
1,564.01
1,333.07
5,661.00
210.01
104.30
532.04
3071.76

THE FINANCIAL YEAR MAR 2011

(Rs Crore)

2011

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

BALANCE SHEET OF THE INDIA CEMENTS LIMITED FOR

102

307.18
3,232.48
1,177.86
1,278.21
5,995.73
5,925.99
550.10
2,091.51
3,284.38
1,039.83
160.31
2,922.01
1,410.80
1,511.21
5,995.73
145.48
104.33
525.28
3071.77

THE FINANCIAL YEAR MAR 2012

(Rs Crore)

2012

Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans
Unsecured loans
Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments
Net current assets
Current assets, loans & advances
Less : current liabilities & provisions
Total net current assets
Miscellaneous expenses not written
Total
Notes:
Book value of unquoted investments
Market value of quoted investments
Contingent liabilities
Number of equity shares outstanding (Lacs)

103

307.18
3,760.44
1,514.11
758.48
6,336.20
6,501.93
2,369.01
4,132.92
145.10
851.96
3,111.35
1,914.01
1,197.34
8.88
6,336.20
846.41
4.06
693.38
3071.79